Australian Senator Andrew Bragg opened the Blockchain Week conference in Australia with a high-profile bill that he hopes will lay the foundation for a new ecosystem of digital assets.
The proposed Digital Services Act (DSA) legislative package calls for reforms in the licensing of the cryptocurrency market, custody, decentralized autonomous organizations (DAOs), banking, and taxation. Senator Bragg said in his speech at the conference that he expects the legislation in law to “protect [crypto] consumers from malicious operators.”
Senator Bragg outlined four main principles on which the Public Debt Act is built. He explained that the DSA would be technologically neutral, have broad and flexible principles, be governed by a minister rather than a bureaucratic agency, and use public resources and personnel. In his opinion, these recommendations will help Australia show that the country is ready to play a more important role in the cryptocurrency industry.
“It will show that Australia is open for business and everything is clear and clean.”
The senator also took the DAO’s stance and urged the various branches of government to take them seriously. He went so far as to call them “an existential threat to the tax base” under current regulations.
According to data released by the Australian Parliament, corporate tax is the second largest source of government revenue after income tax. However, DAOs are not taxed like corporations.
In addition, Senator Bragg said that “his country’s reliance on corporate taxation will be unsustainable” if more organizations become members of the DAO. As a result, the DSA will instruct the government to create a framework for setting standards for the DAO without suppressing their core principles.
The standards primarily ensure that consumers receive audit, insurance, and disclosure services from the DAO that help them distinguish between retailers and wholesalers. Senator Bragg asked the Treasury to address these issues, “leaving the field open for the DAO to continue living up to its name.”
Michael Harris, Head of Corporate Development at the Australian Crypto Exchange, advocates for the government to introduce higher standards for the local crypto industry. He told Cointelegraph today that exchanges have nothing to fear from higher standards because “most Australian exchanges already take their customer service responsibilities very seriously.”
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Harris added that the country listed below should be the leader among developed countries in crypto regulation due to its high adoption rate. A Finster Finder survey found that 22.9% of Australians surveyed owned crypto between October and December 2021. Harris went on to say the following:
We consider this an important step forward. Australia has one of the largest cryptocurrencies in the developed world. It makes sense for us to lead the organization. ”
One of the biggest problems in the cryptocurrency market lately has been the use of individuals and countries to circumvent global economic sanctions. There is currently a debate in the U.S. Senate about whether the Russian government can keep its cryptocurrency-funded military operation in Ukraine.
Blockchain tracker Elliptic discovered on March 15 that some people under sanctions were holding crypto, but Senator Bragg said the Australian government was powerless under existing Digital Currency Exchange (DCE) laws to retaliate against these offenders. The lack of DCE jurisdiction has motivated new proposals to prevent sanctioned individuals from using lax crypto laws, adding:
“The truth is, we are not living in a libertarian nirvana. We can’t have an organizational balance.”